£46m homes deal unlocks major mixed-use regeneration at Devonshire Place

A former petrol station and derelict industrial site will be revitalised with a 941-bed purpose-built student accommodation (PBSA) scheme, as well as 200 on-site affordable homes, shops, and new neighbourhood amenities.

Approved by Southwark Council in 2024, the project is now set to move forward following completion of the deal between Arada London, Shaw Corporation, and L&G.

With an active ground floor including a grocery store, café and student amenities the scheme is designed to create more vibrant high street along Old Kent Road, a key growth corridor in south-east London. It also features a community hub providing free, bookable space for local residents and community groups.

The 200 affordable homes have been acquired by L&G’s Affordable Homes division, unlocking the delivery of the student accommodation and creating a mixed-tenure neighbourhood intended to support both long-term residents and a growing student population.

Sustainability is embedded, with the development targeting BREEAM Excellent through design, construction and operation, and aims to be among one of the first PBSA schemes to achieve WELL Platinum certification.

Plans include significant public realm improvements, comprehensive landscaping, play spaces, and extensive greenery.

For Arada London and Shaw Corporation, the transaction secures a forward-funded affordable housing partner at scale. For L&G, it represents another deployment of institutional capital into London’s constrained affordable housing market.

With funding in place and planning secured, Devonshire Place moves from consent to construction, bringing new homes, student accommodation and local services to a strategic site on the capital’s evolving southern axis.

Pete Cross, Chief Operating Officer, L&G Affordable Homes said:

“Our aim has always been to deliver great quality, environmentally sustainable and affordable homes that people can build a great future from.

“Devonshire Place is an excellent example of how we are able to work with forward-thinking partners and deploy institutional capital to deliver truly affordable homes where they are needed most.”

Chris Shaw, CEO, Shaw Corporation said:

“Devonshire Place is the culmination of years of hard work and detailed consultation with the local community, Southwark Council and the GLA. To commence such a landmark project will help cement the dynamic change and delivery programme of this major London Opportunity Area with the creation of a new community of best-in-class residential housing, student housing, and facilities. The project provides further proof of the intent to build out schemes with highly credible partners where we secure consent in collaboration with local communities, councils, and other stakeholders.”

Jonathan Seal, CEO, Arada London said:

“Progression from consent to site has become the critical test for London schemes. Bringing L&G into Devonshire Place secures the funding and long-term ownership structure needed to move forward. This is about execution, not aspiration. Devonshire Place brings together student living, affordable housing and everyday civic infrastructure in a way that reflects London – dense, mixed and economically active.”

Cllr Helen Dennis, Cabinet Member for New Homes and Sustainable Development said:

“Devonshire Place is a great example of how we generate community benefit from development. Thanks to Southwark’s Council’s strong planning policies, this scheme will deliver 200 social rented homes for local residents on our housing waiting list, as well as a community hub and extensive greening.

“Schemes like this are crucial for delivering the new homes and jobs that we need to see along the Old Kent Road, ambitions that can be fully realised once there is agreement on the Bakerloo Line Extension.”